FINANCIAL AID & MANAGING COLLEGE COSTS CollegePathways2018
Communication = Success Research/ Planning Parent expectations Good college matches Student expectations
Advertised college price Most expensive college University of VT VT state college Community College of VT one year $67,000 $32,000 $24,000 $13,000 all years $268,000 $128,000 $96,000 $26,000 (2 years)
Net price (minus) (equals) = Cost of attendance Gift aid you receive (grants & scholarships) What you need to pay
Average net price for one year, full time Advertised price Net price Most expensive college University of VT VT state college Community College of VT $67,000 $32,000 $24,000 $13,000 $20,500 $17,800 $16,000 $11,000
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College information
Your role The family has the primary responsibility to pay for higher education. Financial aid is meant to assist families with paying for college. Parents Students
Types of financial aid Grants Scholarships Loans Work-study
Financial applications to submit Free Application for Federal Student Aid (FAFSA) Vermont grant application CSS Profile College financial aid forms Scholarship applications Loan applications
How & when to apply FSA ID Student applying for aid and at least one parent on the FAFSA each need an FSA ID (dependent student). Takes time to set up: More security = more questions. Can do NOW.
How & when to apply File your FREE Application for Federal Student Aid (FAFSA) Required; available October 1, 2018. Use 2019 2020 version (or the year student will attend college). Check college deadlines. Colleges can be added later if student applies early and later decides to apply to more schools. First day to file 10.01.18 Coming soon: Mobile app
Financial aid applications File the Vermont grant application Open to Vermont residents. Available October 1, 2018. Required for state grant aid. Apply early, check status, and complete. Can fill out forms online, upload documents to complete requests. First day to file 10.01.18 Take the Vermont grant with you to in-state & out-of-state colleges
Determining financial need What is the EFC /family contribution and how is it determined? The family contribution is a starting point not what you have to pay. Income Number in college Assets Age of older parent Family size
Family pays EFC & unmet need The family contribution is a starting point NOT what you have to pay. $55,500 Remaining need (gap) $24,000 $32,000 College aid Direct loans for students Vermont grant Expected family contribution
Maximizing financial aid Do well in school. Challenge yourself. Increase school and community involvement. Communicate special circumstances to financial aid offices. Research scholarships. Apply for scholarships.
Ways to reduce costs Look farther (in state, other states, Canada). Dual enrollment Early college AP NEBHE Start at a school that costs less, then transfer.
Ways to pay Past income savings college savings plan Present income payment plans tax credits scholarships Future income parent PLUS loans additional student loans private loans other borrowing options
What have you got? What can you save? The more you save, the less you have to borrow. What can you add to savings before you need to pay for college? How much can students add to savings through gifts or summer employment?
Savings options 529 college savings plans Easy to start with only $25. Can contribute easily, even small amounts. Withdrawals for qualified education expenses are tax-free. Vermont tax credit. IRA & Coverdell accounts
Federal education loans for students first year by sophomore year by junior year by senior year Annual eligibility $5,500 $6,500 $7,500 $7,500 Cumulative borrowed Cumulative borrowed $5,500 $12,000 $19,500 $27,000
Loan options Federal or non federal Available from Loan type Interest rate Accept or compare? Federal Your college Federal Direct loans for students 2017 2018 4.45% APR* Accept these loans first. Federal Your college Federal PLUS loan for parents 2017 2018 7.0% APR* Compare these loans. Non-federal VSAC VT Advantage Student fixed rate 2017 2018 5.8%, 6.2%, 7.1% APR Compare these loans. Non-federal VSAC VT Advantage Parent fixed rate 2017 2018 5.8%, 6.95% APR Compare these loans. Non-federal Nonprofit organizations, banks, credit unions, other private lenders Alternate loans (often called private loans) Varies by lender (variable and fixed). Compare these loans. * Each year on July 1, the U.S. Department of Education sets a new rate.
Calculators for savings & for loans Mappingyourfuture.org Student loan debt/salary wizard https://studentloanhero.com/calculators/ Student loan comparison calculator Debt to income calculator Collegeboard.org financial aid tools and calculators EFC calculator Parent debt calculator
Next Steps Junior year Online college searches. College Navigator to gather net price information. Family discussions about choosing and paying. Research scholarships.
Next Steps Senior year Research forms and deadlines required by colleges. Get FSA ID for student and one for parent. Gather family financial information to file applications. File the FAFSA and Vermont grant application. File VSAC s Unified Scholarship Application.
vsac.org/ CCP18
VSAC s paying for college guide August at vsac.org/resources
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